Iran Sanctions - EU Council Decision 2012/635 of 16 October 2012

The EU by way of Council Decision 2012/635 of 16 October 2012 has proposed new measures targeting Iran. At this point in time, the measures are only proposals and an implementing Regulation will be required to make them binding on companies and individuals.  The timing of such an implementing Regulation remains unclear.    

A copy of the Council Decision 2012/635 can be found attached to this alert.

The parts of the proposed measures which appear to be of most relevance to Members and the Association are:

1. A ban on the transport of Iranian natural gas  (and the insurance of such transport)

2. A ban on the transfer to Iran of graphite, and raw or semi finished metals such as aluminium and steel which are relevant to industries controlled by the Iranian government or relevant to Iran’s nuclear programme.

3. In addition to the ban on the transport of Iranian crude oil and petroleum/petrochemical products, a ban on the supply of vessels to any person, entity or body for the transport or storage of Iranian oil an petrochemical products and a ban on the supply of vessels for the transport or storage of oil and petrochemical products to Iranian persons, entities or bodies.

The Council Decision does not define what is meant by “natural gas” and “raw or semi finished metals”. There is also no guidance on how relevance to industries which are directly or indirectly controlled by the Iranian government or to Iran’s nuclear programme is to be ascertained.

Furthermore, the Council provides proposals for a grace period for graphite  and raw or semi finished metals until 15 April 2013, if they relate to contracts concluded before 16 October 2012. However, there appears to be no agreement on a grace period in respect of the transport of natural gas.

Members who continue to trade with Iran should take into account that the implementing Regulation may closely follow the proposed measures and could come into force within weeks.